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Japanese yen slips as US-Japan intervention follow-through remains unclear
Last week, the US and Japan jointly intervened to counter excessive yen volatility, but this week the yen lagged peers after there was no confirmed follow-up action.
FXStreet reports the Japanese yen has underperformed major currency peers over the week, with the move tied to a lack of confirmed follow-up joint intervention by the United States and Japan.
The outlet notes that both countries intervened together last week to counter “excessive volatility and disorderly movements” in the yen, but this week’s tone appears weaker amid questions about whether coordinated action will continue.
Commerzbank analyst Thu Lan Nguyen said the durability of any yen rebound depends on whether markets believe the joint approach is not a one-off, adding that US Treasury Secretary Scott Bessent has signalled the US could act again if necessary.
Japan’s Ministry of Finance and officials also indicated willingness to intervene further, while the euro traded more calmly after Germany’s June industrial production came in above expectations, with euro-focused sentiment buoyed by that data.